Toll Brothers, the largest U.S. luxury home builder, posted a surprising first-quarter profit, Bloomberg  reported.
The company managed to increase revenue, cut costs and reduce property impairments. Net profit was $3.4 million, or 2 cents per share, compared with a loss of $40.8 million last year. Analysts had predicted a loss of 8 cents per share.
Toll Brothers cut expenses and sold homes at higher prices to counter slower demand for new properties.
“Meaningful headway was made on the cost side of the ledger,” Stephen East and Paul Przybylski, analysts with New York-based Ticonderoga Securities LLC, wrote in a note to clients today. “Much heavy lifting is still needed, but the results are encouraging.”